UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM N-Q
QUARTERLY SCHEDULE OF PORTFOLIO HOLDINGS OF REGISTERED MANAGEMENT
INVESTMENT COMPANY
Investment Company Act file number 811-21381
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FIRST TRUST VALUE LINE(R) DIVIDEND FUND
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(Exact name of registrant as specified in charter)
1001 Warrenville Road
Suite 300
LISLE, IL 60532
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(Address of principal executive offices) (Zip code)
W. Scott Jardine
First Trust Portfolios, LP
1001 Warrenville Road
Suite 300
LISLE, IL 60532
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(Name and address of agent for service)
Registrant's telephone number, including area code: 630-241-4141
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Date of fiscal year end: MAY 31, 2004
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Date of reporting period: AUGUST 31, 2004
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Form N-Q is to be used by management investment companies, other than small
business investment companies registered on Form N-5 (ss.ss. 239.24 and 274.5 of
this chapter), to file reports with the Commission, not later than 60 days after
the close of the first and third fiscal quarters, pursuant to rule 30b1-5 under
the Investment Company Act of 1940 (17 CFR 270.30b1-5). The Commission may use
the information provided on Form N-Q in its regulatory, disclosure review,
inspection, and policymaking roles.
A registrant is required to disclose the information specified by Form N-Q, and
the Commission will make this information public. A registrant is not required
to respond to the collection of information contained in Form N-Q unless the
Form displays a currently valid Office of Management and Budget ("OMB") control
number. Please direct comments concerning the accuracy of the information
collection burden estimate and any suggestions for reducing the burden to the
Secretary, Securities and Exchange Commission, 450 Fifth Street, NW, Washington,
DC 20549-0609. The OMB has reviewed this collection of information under the
clearance requirements of 44 U.S.C. ss. 3507.
ITEM 1. SCHEDULE OF INVESTMENTS.
The Schedule of Investments is attached herewith.
First Trust Value Line(R)Dividend Fund
Portfolio of Investments
August 31, 2004 (Unaudited)
MARKET
SHARES VALUE
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COMMON STOCKS - 99.1%
UTILITIES - 20.2%
104,739 AGL Resources, Inc. $3,193,492
119,289 ALLETE, Inc. 3,227,960
78,450 Cinergy Corp. 3,175,656
76,717 Consolidated Edison, Inc. 3,237,457
78,724 Constellation Energy Group, Inc. 3,235,556
48,810 Dominion Resources, Inc. 3,167,281
129,773 Energy East Corp. 3,162,568
52,896 Entergy Corp. 3,189,629
61,039 Equitable Resources, Inc. 3,200,275
87,631 Exelon Corp. 3,229,202
46,150 FPL Group, Inc. 3,193,580
107,886 Great Plains Energy, Inc. 3,253,842
124,556 Hawaiian Electric Industries, Inc. 3,214,790
83,157 KeySpan Corp. 3,168,282
126,907 MDU Resources Group, Inc. 3,219,631
120,014 National Fuel Gas Company 3,213,975
77,851 New Jersey Resources Corp. 3,180,213
88,416 Nicor, Inc. 3,169,714
65,751 NSTAR 3,208,649
76,568 Peoples Energy Corp. 3,181,400
74,248 Piedmont Natural Gas Company, Inc. 3,222,363
76,071 Pinnacle West Capital Corp. 3,210,957
151,123 PNM Resources, Inc. 3,229,499
72,844 Progress Energy, Inc. 3,197,123
78,043 Questar Corp. 3,174,789
84,424 SCANA Corp. 3,203,047
87,100 Sempra Energy 3,148,665
105,368 The Southern Company 3,197,919
153,248 TransCanada Corp. 3,201,351
130,448 Vectren Corp. 3,189,454
110,954 WGL Holdings, Inc. 3,178,832
97,410 Wisconsin Energy Corp. 3,190,177
68,487 WPS Resources Corp. 3,196,288
180,984 Xcel Energy, Inc. 3,194,368
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108,757,984
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BANKS - 19.4%
123,292 AmSouth Bancorp 3,211,756
101,216 Associated Banc-Corp. 3,168,061
71,412 Bank of America Corp. 3,212,112
77,280 Bank of Montreal 3,190,891
112,575 Bank of Nova Scotia 3,085,681
79,657 BB&T Corp. 3,185,483
62,119 Canadian Imperial Bank of Commerce 3,164,963
94,328 Capitol Federal Financial 3,188,286
71,123 Charter One Financial, Inc. 3,162,840
47,719 City National Corp. 3,148,500
52,631 Comerica, Inc. 3,165,755
65,020 Commerce Bancshares, Inc. 3,142,417
62,524 Fifth Third Bancorp 3,114,320
70,284 First Horizon National Corp. 3,195,813
91,620 First Midwest Bancorp, Inc. 3,154,477
119,110 Hibernia Corp., Class A 3,198,103
1
First Trust Value Line(R)Dividend Fund - (Continued)
Portfolio of Investments
August 31, 2004 (Unaudited)
MARKET
SHARES VALUE
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COMMON STOCKS - (CONTINUED)
BANKS - (CONTINUED)
78,646 Marshall & Ilsley Corp. $3,152,132
66,666 Mercantile Bankshares Corp. 3,173,302
94,604 National Bank of Canada 3,101,770
83,930 National City Corp. 3,171,715
75,815 North Fork Bancorporation, Inc. 3,179,681
126,147 Old National Bancorp 3,142,322
58,812 PNC Financial Services Group, Inc. 3,156,440
100,158 Regions Financial Corp. 3,234,102
67,796 Royal Bank of Canada 3,070,481
77,129 SouthTrust Corp. 3,189,284
46,320 SunTrust Banks, Inc. 3,154,392
124,900 Synovus Financial Corp. 3,172,460
92,695 Toronto-Dominion Bank 3,223,932
123,921 Washington Federal, Inc. 3,192,205
81,717 Washington Mutual, Inc. 3,173,071
53,805 Wells Fargo & Company 3,161,044
84,923 Wilmington Trust Corp. 3,154,040
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104,491,831
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REITS - 11.9%
102,132 Archstone-Smith Trust 3,191,625
52,318 Avalonbay Communities, Inc. 3,160,007
86,598 BRE Properties, Inc., Class A 3,236,167
95,468 Duke Realty Corp. 3,245,912
112,736 Equity Office Properties Trust 3,219,740
97,953 Equity Residential 3,172,698
70,899 Federal Realty Investment Trust 3,217,397
125,346 Health Care Property Investors, Inc. 3,177,521
85,405 Healthcare Realty Trust, Inc. 3,224,039
63,619 Kimco Realty Corp. 3,201,308
79,797 Liberty Property Trust 3,228,587
71,139 Mack-Cali Realty Corp. 3,219,751
123,678 New Plan Excel Realty Trust 3,180,998
82,398 Pennsylvania Real Estate Investment Trust 3,152,548
95,641 Plum Creek Timber Company, Inc. 3,159,979
88,268 Prologis 3,190,888
56,916 Simon Property Group, Inc. 3,184,450
150,978 United Dominion Realty Trust, Inc. 3,205,263
106,040 Washington Real Estate Investment Trust 3,216,193
95,612 Weingarten Realty Investors 3,214,475
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63,999,546
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FOOD, BEVERAGE & TOBACCO - 10.0%
60,305 Anheuser-Busch Companies, Inc. 3,184,104
68,339 Brown-Forman Corp., Class B 3,245,419
99,370 Cadbury Schweppes PLC, Sponsored ADR 3,244,431
120,243 Campbell Soup Company 3,121,508
70,661 Coca-Cola Company 3,159,253
120,610 ConAgra Foods, Inc. 3,159,982
67,363 General Mills, Inc. 3,182,902
83,048 H.J. Heinz Company 3,148,350
65,275 Hershey Foods Corp. 3,151,477
75,238 Kellogg Company 3,158,491
2
First Trust Value Line(R)Dividend Fund - (Continued)
Portfolio of Investments
August 31, 2004 (Unaudited)
MARKET
SHARES VALUE
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COMMON STOCKS - (CONTINUED)
FOOD, BEVERAGE & TOBACCO - (CONTINUED)
100,604 Kraft Foods, Inc. $3,146,893
63,941 PepsiCo, Inc. 3,197,050
140,869 Sara Lee Corp. 3,117,431
67,986 The J.M. Smucker Company 3,125,996
52,896 Unilever NV 3,176,934
91,620 Unilever PLC, Sponsored ADR 3,192,041
69,542 Universal Corp. 3,138,430
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53,850,692
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ENERGY - 5.9%
59,231 BP PLC, Sponsored ADR 3,180,705
33,106 ChevronTexaco Corp. 3,227,835
43,151 ConocoPhillips 3,211,729
69,634 Exxon Mobil Corp. 3,210,127
89,139 Marathon Oil Corp. 3,233,072
62,463 Occidental Petroleum Corp. 3,226,214
62,512 Royal Dutch Petroleum Company 3,168,733
1,965 Shell Transport & Trading Company PLC,
Sponsored ADR 3,188,050
52,016 Sunoco, Inc. 3,198,984
32,655 Total SA, Sponsored ADR 3,199,863
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32,045,312
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CAPITAL GOODS - 5.3%
42,888 Caterpillar, Inc. 3,117,957
51,083 Emerson Electric Company 3,179,917
96,429 General Electric Company 3,161,907
73,266 Harsco Corp. 3,288,178
72,245 Hubbell, Inc., Class B 3,117,372
77,660 Lancaster Colony Corp. 3,205,805
105,333 Lincoln Electric Holdings, Inc. 3,166,310
99,059 Snap-On, Inc. 3,147,104
72,560 Teleflex, Inc. 3,173,049
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28,557,599
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INSURANCE - 5.3%
99,873 Arthur J. Gallagher & Company 3,181,954
46,192 Chubb Corp. 3,141,518
78,783 Cincinnati Financial Corp. 3,178,894
65,696 Jefferson-Pilot Corp. 3,146,838
69,496 Lincoln National Corp. 3,148,169
70,820 Marsh & McLennan Companies, Inc. 3,164,946
62,985 Mercury General Corp. 3,158,698
66,136 The Allstate Corp. 3,122,280
74,881 Unitrin, Inc. 3,141,258
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28,384,555
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MATERIALS - 4.1%
61,670 Ashland, Inc. 3,171,688
118,841 Bemis Company 3,140,968
73,831 E. I. du Pont de Nemours and Company 3,120,098
81,950 International Flavors & Fragrances, Inc. 3,157,534
52,798 PPG Industries, Inc. 3,155,736
121,913 Sonoco Products Company 3,158,766
3
First Trust Value Line(R)Dividend Fund - (Continued)
Portfolio of Investments
August 31, 2004 (Unaudited)
MARKET
SHARES VALUE
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COMMON STOCKS - (CONTINUED)
MATERIALS - (CONTINUED)
66,638 Vulcan Materials Company $3,176,633
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22,081,423
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HOUSEHOLD & PERSONAL PRODUCTS - 3.5%
50,779 Avery Dennison Corp. 3,155,915
43,169 Fortune Brands, Inc. 3,157,812
47,813 Kimberly-Clark Corp. 3,189,127
117,428 Leggett & Platt, Inc. 3,157,639
56,732 Procter & Gamble Company 3,175,290
60,190 The Clorox Company 3,180,440
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19,016,223
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PHARMACEUTICALS & BIOTECHNOLOGY - 3.5%
76,550 Abbott Laboratories 3,191,370
76,457 GlaxoSmithKline PLC, Sponsored ADR 3,145,441
49,045 Lilly (Eli) & Company 3,111,905
70,019 Merck & Company, Inc. 3,148,754
96,991 Pfizer, Inc. 3,168,696
84,356 Wyeth 3,084,899
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18,851,065
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TELECOMMUNICATION SERVICES - 2.9%
58,779 ALLTEL Corp. 3,212,272
119,923 BellSouth Corp. 3,209,139
122,480 SBC Communications, Inc. 3,158,759
105,018 Telecom Corp. of New Zealand Ltd., Sponsored ADR 3,153,691
81,087 Verizon Communications, Inc. 3,182,665
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15,916,526
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HEALTH CARE EQUIPMENT & SERVICES - 1.8%
103,606 Baxter International, Inc. 3,164,127
55,594 Hillenbrand Industries, Inc. 3,127,719
54,699 Johnson & Johnson 3,178,012
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9,469,858
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MEDIA - 1.2%
76,218 Dow Jones & Company, Inc. 3,128,749
48,977 Knight-Ridder, Inc. 3,155,588
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6,284,337
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DIVERSIFIED FINANCIALS - 1.2%
124,409 Allied Capital Corp. 3,158,744
79,999 SLM Corp. 3,121,561
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6,280,305
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AUTOMOBILES & COMPONENTS - 1.1%
82,571 Genuine Parts Company 3,130,267
41,540 Magna International, Inc. 3,093,899
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6,224,166
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ELECTRIC UTILITIES - 0.6%
68,250 Ameren Corp. 3,193,418
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COMMERCIAL SERVICES - 0.6%
72,945 Pitney Bowes, Inc. 3,177,484
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4
First Trust Value Line(R)Dividend Fund - (Continued)
Portfolio of Investments
August 31, 2004 (Unaudited)
MARKET
SHARES VALUE
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COMMON STOCKS - (CONTINUED)
HOTELS, RESTAURANTS & LEISURE - 0.6%
65,902 Polaris Industries, Inc. $ 3,107,938
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TOTAL COMMON STOCKS 533,690,262
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(Cost $484,537,466)
TOTAL INVESTMENTS - 99.1% 533,690,262
(Cost $484,537,466)*
NET OTHER ASSETS & LIABILITIES - 0.9% 5,078,510
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NET ASSETS - 100.0% $538,768,772
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* Aggregate cost for federal tax purposes.
ADR American Depository Receipt
REIT Real Estate Investment Trust
5
First Trust Value Line(R) Dividend Fund
August 31, 2004 (Unaudited)
1. VALUATION AND INVESTMENT PRACTICES
PORTFOLIO VALUATION:
The Fund determines the net asset value ("NAV") of its shares daily, as of the
close of regular session trading on the New York Stock Exchange ("NYSE"),
normally 4:00 p.m. Eastern time, on each day the NYSE is open for trading. The
NAV is computed by dividing the value of all assets of the Fund (including
accrued interest and dividends), less all liabilities (including accrued
expenses and dividends declared but unpaid), by the total number of shares
outstanding.
The Fund's investments are valued at market value or, in the absence of market
value with respect to any portfolio securities, at fair value as determined by,
or under the direction of the Fund's Board of Trustees. Portfolio securities
listed on any exchange other than the NASDAQ National Market ("NASDAQ") are
valued at the last sale price on the business day of which such value is being
determined. If there has been no sale on such day, the securities are valued at
the mean of the most recent bid and asked prices on such day. Securities trading
on the NASDAQ are valued at the NASDAQ Official Closing Price as determined by
NASDAQ. Portfolio securities traded in the over-the-counter market, but
excluding securities trading on the NASDAQ, are valued at the closing bid
prices. Short-term investments that mature in 60 days or less are valued at
amortized cost.
Foreign securities traded outside the United States are generally valued as of
the time their trading is complete, which is usually different from the close of
the NYSE. Occasionally, events affecting the value of such securities may occur
between such times and the close of the NYSE that will not be reflected in the
computation of a Fund's NAV. If events materially affecting the value of such
securities occur during such period, these securities will be valued at their
fair value according to procedures decided upon in good faith by the Fund's
Board of Trustees. All securities and other assets of the Fund initially
expressed in foreign currencies will be converted to U.S. dollars using exchange
rates in effect at the time of valuation.
SECURITIES TRANSACTIONS:
Securities transactions are recorded as of the trade date. Realized gains and
losses from securities transactions are recorded on the identified cost basis.
Securities purchased or sold on a when-issued or delayed-delivery basis may be
settled a month or more after the trade date; interest income is not accrued
until settlement date. The Fund instructs the custodian to segregate assets of
the Fund with a current value at least equal to the amount of its when-issued
purchase commitments.
2. UNREALIZED APPRECIATION/(DEPRECIATION)
On August 31, 2004, net unrealized appreciation for Federal tax purposes was
$49,152,796, consisting of $52,716,245 aggregate gross unrealized appreciation
for all securities in which there is an excess of value over tax cost and
$3,563,449 aggregate gross unrealized depreciation for all securities in which
there is an excess of tax cost over value.
6
ITEM 2. CONTROLS AND PROCEDURES.
(a) The registrant's principal executive and principal financial officers,
or persons performing similar functions, have concluded that the
registrant's disclosure controls and procedures (as defined in Rule
30a-3(c) under the Investment Company Act of 1940, as amended (the
"1940 Act") (17 CFR 270.30a-3(c))) are effective, as of a date within
90 days of the filing date of the report that includes the disclosure
required by this paragraph, based on their evaluation of these controls
and procedures required by Rule 30a-3(b) under the 1940 Act (17 CFR
270.30a-3(b)) and Rules 13a-15(b) or 15d-15(b) under the Securities
Exchange Act of 1934, as amended (17 CFR 240.13a-15(b) or
240.15d-15(b)).
(b) There were no changes in the registrant's internal control over
financial reporting (as defined in Rule 30a-3(d) under the 1940 Act (17
CFR 270.30a-3(d)) that occurred during the registrant's last fiscal
quarter that has materially affected, or is reasonably likely to
materially affect, the registrant's internal control over financial
reporting.
ITEM 3. EXHIBITS.
Certifications pursuant to Rule 30a-2(a) under the 1940 Act and Section 302 of
the Sarbanes-Oxley Act of 2002 are attached hereto.
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934 and the
Investment Company Act of 1940, the registrant has duly caused this report to be
signed on its behalf by the undersigned, thereunto duly authorized.
(Registrant) FIRST TRUST VALUE LINE(R) DIVIDEND FUND
By (Signature and Title)* /S/ JAMES A. BOWEN
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James A. Bowen, Chief Executive Officer
(principal executive officer)
Date OCTOBER 28, 2004
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Pursuant to the requirements of the Securities Exchange Act of 1934 and the
Investment Company Act of 1940, this report has been signed below by the
following persons on behalf of the registrant and in the capacities and on the
dates indicated.
By (Signature and Title)* /S/ JAMES A. BOWEN
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James A. Bowen, Chief Executive Officer
(principal executive officer)
Date OCTOBER 28, 2004
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By (Signature and Title)* /S/ MARK R. BRADLEY
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Mark R. Bradley, Chief Financial Officer
(principal financial officer)
Date OCTOBER 28, 2004
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* Print the name and title of each signing officer under his or her signature.